Key facts
- Options on SpaceX shares began trading Tuesday with heavy volume.
- Over 675,000 option contracts traded by 10:40 a.m. ET.
- Call options led put options 1.5-to-1.
- SpaceX shares rose more than 8% on Tuesday.
- The company's valuation surpassed Amazon.com.
Trading in options on Elon Musk's SpaceX shares commenced with heavy volume on Tuesday, highlighting significant investor interest in speculating on the aerospace company's future. More than half a million contracts traded in the first hour, making SpaceX the most heavily traded company on its options debut, according to Trade Alert data. Calls outnumbered puts 1.5-to-1. Options provide the right, but not the obligation, to buy or sell shares at a set price within a specific timeframe, offering a low-cost way to gain exposure or hedge risk. The robust options activity follows a strong debut for SpaceX shares on Friday, which surged over 25% to a valuation exceeding $2 trillion. On Tuesday, SpaceX shares rose more than 8%, pushing its market valuation above Amazon.com.